photo credit: Scurzuzu

An already popular Fannie Mae is going to hold home owners to their contracts, even if they are completely upside down. More and more people these days are deciding to simply walk away from their mortgages, deciding that the hit to their credit is worth getting out of a contract where they are paying at least 20% more than the house is currently worth. With employment down in the U.S. and the housing market tanking, people just cant hold on.

Now Fannie Mae is going to make sure they get theirs. If they have evidence that people had the means to stay in their homes and chose to default on their loans they will not secure another loan for up to 7 years as well as take borrowers to court seeking to recover losses through deficiency judgments.

The good news is that if you lose your job, have an illness, get a divorce, or are otherwise unable to make your payments they will work with you to come up with alternatives. Pray for an illness! Terence Edwards, Fannie Mae's executive vice president for credit portfolio management said in a press release, "Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting." Makes you wonder how the bailout is working out for them.

Read the full article from Inman News

Posted in Industry Events, Press Room, Announcements, MBI Headlines, Buyer Resources

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